The Dow Jones Technical Analysis - A Specialist in Technical Analysis

For Jan, 15 2015

(Individual Chart Analysis)

This is a no-frills analysis.  It is not designed to look good, it is designed to be effective. 


Summary of the Technical Analysis for the DOW

(This takes into account the near term, mid term, and longer term charts)

Our combined analysis for Thursday tells us to expect the market to begin the day flirting with initial levels of resistance and the ability or the inability of the market to hold resistance will likely influence trading direction for Thursday and probably the next few days.  The midterm charts tell us to expect lower levels and tests of midterm support, and if initial resistance as that is offered in our combined data tables remains intact a test of midterm support is likely to come much sooner, but if resistance breaks higher a neutral near-term pattern is likely to develop and a progression down towards midterm support will likely take longer instead.  Our combined longer-term analysis also tells us that the market is in the process of declining towards longer term upward sloping support lines again, so the initial resistance level, which is near term resistance as well, acts as not only an indicator of timing for the midterm chart patterns, but it could influence the timing of the longer-term progression down towards support as well.

Initial intraday trading parameters for the DOW exist between17190 - 17460
If 17190 breaks lower expect 16750
If17460breaks higher expect 17700
Otherwise expect17190 - 17460 to hold

If 17190 remains in tact as initial support, expect the market to increase to 17460. This reflects a tight near term down channel. However, and in line with our combined analysis, if 17190 breaks lower instead expect the market to decline to 16750 before it stabilizes again.


NEAR Term Analysis

Our combined near-term analysis tells us that the market is in a near-term downward sloping channel and the resistance line of this downward sloping channel was being tested as the market came to a close on Wednesday.  If resistance remains intact we should expect the market to turn down and test the downward sloping support line, a lower low by definition.  However, if the downward sloping resistance line breaks higher we should expect neutral near-term patterns to develop instead.

NEAR Term Support for the DOW exists at 17205

NEAR Term Resistance for the DOW exists at 17460

Dow_5_day


MID Term Analysis

Our combined midterm analysis tells us that the market is progressing lower towards midterm downward sloping support after testing midterm downward sloping resistance recently.  Our combined midterm analysis tells us to expect the market to continue to decline until support is tested unless resistance breaks higher.

MID Term Support for the DOW exists at 17175

MID Term Resistance for the DOW exists at 17875

Dow_30_day


LONG Term Analysis

Our combined longer-term analysis tells us that large candles developed, with long legs, last week, and the NASDAQ formed a very large and almost perfect DOJI.  The markets have all already tested longer-term resistance as well and a natural progression down to longer term support should be expected by rule, but nothing is preventing another test of resistance from occurring beforehand.  Our combined longer-term analysis tells us that we should already be expecting longer term support because resistance was tested already, but if resistance is tested again another opportunity to short the market on a longer term basis will likely surface.

LONG Term Support for the DOW exists at 16750

LONG Term Resistance for the DOW exists at 18150

Dow_1_year